This bill amends the current law regarding special education funding for school districts by eliminating the requirement for proration of catastrophic special education funds. Instead, it mandates that disbursements for special education to a school district must be at least 80 percent of the district's entitlement for catastrophic aid costs in the fiscal year. The bill also specifies that the state board of education will distribute aid to school districts responsible for special education costs that exceed 3 and 1/2 times the estimated state average expenditure per pupil from the previous school year. Additionally, it allows for the distribution of unexpended funds for court-ordered placements and treatment episodes, and it designates funds for emergency assistance to mitigate the impact of special education costs.

The bill further clarifies the financial responsibilities of school districts, stating that they will be liable for 3 and 1/2 times the estimated state average expenditure per pupil, plus 20 percent of the additional costs, up to 10 times that average. The new language inserted into the law includes provisions for the department of education to distribute not less than 85 percent of the district's entitlement for catastrophic aid costs in the fiscal year. The bill does not provide additional funding, and its fiscal impact is indeterminable, as it depends on the number of students qualifying for aid each year.

Statutes affected:
Introduced: 186-C:18
HB773 text: 186-C:18